Unit 4- Social Interactions

Question 1

Strategic interaction definition:

Answer 1

A social interaction in which the participants are aware of the ways in which their actions affect others, and the ways that the actions of others affect them

Question 2

Dominant strategy definition:

Answer 2

Action that results in the highest payoff for a player, no matter what the other players do

Question 3

Dominant strategy equilibrium definition:

Answer 3

An outcome of a game where every player plays their dominant strategy

Question 4

Nash equilibrium definition:

Answer 4

Where each players’ strategy is a best response to the strategies chosen by everyone else